(Evaluating liquidity) The Tabor Sales Company had a gross profit margin (gross profits divided by ÷ sales) of 30.2 percent and sales of $9.9 million last year. Seventy-five percent of the firm's sales are on credit and the remainder are cash sales. Tabor's current assets equal $2.6 million, its current liabilities equal $296, 000 and it has $104,000 in cash plus marketable securities.
a. If Tabor's accounts receivable are $562,500 what is its average collection period (Round to two decimal places) Please wait...
b. If Tabor reduces its average collection period to 19 days, what will be its new level of accounts receivable?
c. Tabor's inventory turnover ratio is 9.3 times. What is the level of Tabor's inventories?
(Market-value ratios) Garret Industries has a price/earnings ratio of 18.92.
a. Garret's earnings per share is $1.57,what is the price per share of Garret's stock?
b. Using the price per share you found in part a, determine the price/book ratio if Garret's equity book value per share is $ $9.86.(Round to the nearest cent.)